C44—Lancaster Farming, Saturday, April 19,1980
Will producer costs figure
in dairy supports?
BURLINGTON, Vt. - Will
the costs of producing milk
play a role in the deter
mining of future government
dairy price supports?
It would seem that way if
feelers put out recently in a
speech by a leading USDA
economist are any in
dication.
Speaking before the
Northeast Dairy Conference,
Howard W. Hjort, the
USDA’s Director of
Economics, Policy Analysis
and Budget, called on dairy
industry leaders to
cooperate in any future
development and testing of
new dairy policy standards.
“We can all be certain that
the cost of producing dairy
products will be a factor of
even greater importance in
dairy price support policy in
the future,” he said.
“Producers and con
sumers are both better off if
supports generally track
producers’ costs of
production and if the market
r
Farm Business
News
Takes milk cooler line
GORDONVILLE - Suit’s
Refrigeration Service, 27
Hatville Road, Gordonville,
has recently become a
distributor for the Paul
Mueller Company as an
authorized sales and service
representative for Mueller
Milk Coolers, Mueller Fre-
Heaters and the Mueller-
Matic Automatic Washing
Dick Ashley, president, Chemicals Company,
presents Allied's top honor, The President's Award,
to Glenn Yoder, right.
ALL TYPES OF
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• Broiler Houses
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• Hog Houses
• Cattle Barns
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And Mas y Others
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signals for production ad
justments can be clearly
understood,”
A cost of production mdex
provides a much earlier
warning of changing
economic circumstances
and a good cost of production
estimate would be much
more reliable as an indicator
of corrections that must be
made, he explained.
Hjort cited recent cir
cumstances m which price
supports have been rising
faster than the per unit cost
of milk production.
He estimated that it will
cost the average dairyman
between $11.24 and $11.50 to
produce each hundredweight
of milk in 1980.
The support price was
boosted to $12.36 on April 1
and is scheduled to rise to
somewhere between $13.00
and $13.25 on October 1.
“By most economic
measures, dairy farmers are
making money and have
very strong economic in-
System.
The Paul Mueller Com
pany is the largest
manufacturer in the world of
milk coolers for dairy farms.
Mueller Milk Coolers are
currently being used in 70
countries.
Gratz M. Suit is the owner
of Suit’s Refrigeration
Service.
Call
centives to produce milk,”
he said.
“In response to these
incentives, production is
increasing rapidly, much
more rapidly than com
mercial use.”
The USDA economist said
the cost of the dairy support
program will be at least $BOO
million, and very likely even
larger this year.
“To be blunt,” he said,
“the program is in trouble.’ ’
“It is providing producers
with strong economic signals
to increase production at a
tune when milk and milk
products are m surplus
supply. It is inflexibly in
creasing support levels and
consumers’ costs at a time
when retail prices are
already high and food price
inflation a matter of serious
national concern* And, it is
providing producers in
creases in returns not fully
justified by costs.”
He said there is danger not
only in the increased
program costs, but in
possible consumer backlash.
Blue form
workshop held
in Lancaster
LANCASTER - All 4-H
members and
leaders are invited to attend
the workshop on completing
4-H Blue Forms, for the
National Awards Program,
at the Lancaster County
Farm and Home Center, on
April 29, at 7:30 p.m.
York County 4-H’ers who
have been National Award
winners will be giving tips on
filling out award winning
blue forms.
There will be a slide
presentation on National 4-H
Congress shown during the
evening program.
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